SK Square (402340) Q3 2025 earnings summary

Executive summary

• Consolidated operating income rose by KRW 1.5tn year-over-year to KRW 2.6tn, driven by strong SK hynix earnings and operational improvements in ICT portfolio companies.

• Net income reached KRW 2.48tn, with consolidated revenue at KRW 407.9bn for 2025.3Q.

• Net asset value (NAV) increased by KRW 7.8tn quarter-over-quarter to KRW 56.3tn, mainly due to the higher value of the SK hynix stake.

• Revenue for the nine months ended September 30, 2025, was KRW 1,217.3 billion, down 14.5% year-over-year; operating income was KRW 5,698.9 billion, up 152% year-over-year, driven by equity method gains from SK hynix.

• Net profit attributable to owners of the parent was KRW 5,541.6 billion, up 149% year-over-year; basic EPS was KRW 41,853, up from KRW 16,597 in the prior year.

Financial highlights

• Operating income: KRW 2,645.5bn; Net income: KRW 2,482.4bn; Revenue: KRW 407.9bn for 2025.3Q.

• Equity method gain/loss: KRW 2,660.1bn; NAV per share: KRW 425,076.

• Cash and equivalents: KRW 1,557.4bn; Net cash: KRW 1,088.2bn.

• Total assets: KRW 27,254.2bn; Liabilities: KRW 2,388.2bn; Shareholders' equity: KRW 24,866.0bn.

• Debt ratio: 9.6% (down from 11.9% at year-end 2024); operating margin: 468% (driven by equity method gains).

Outlook and guidance

• Full-year EBITDA turnaround expected in 2025 for TMAP MOBILITY, driven by mobility data business growth and AI integration.

• SK hynix plans to ramp up sales from 4Q25 after completing 2026 HBM supply discussions.

• The group continues to focus on portfolio optimization, cost efficiency, and strengthening its position in semiconductors and ICT platforms.

• Ongoing divestitures and restructuring: announced sales of Dreamus Company, 11st, and Incross stakes in Q4 2025.

• Dividend policy targets payout of at least 30% of recurring dividend income, with additional shareholder returns from asset harvests.